Indian Industry During The First World War

Updated | July 31, 2017 10:20 IST

During the First World War(1914-18), the import of foreign goods into India fell sharply. One reason was that cargo ships were diverted to war related duties, and hence there was a shortage of ships. Also, in the factories of Europe, things needed for the war were being made-so fewer goods meant for the Indian markets were available.

Under these circumstances, the factories that had been established in India started selling their goods in greater quantities. Enthused by these heavy sales there was a rapid development of industries.

After the war came to an end, European machines were purchased in large numbers for Indian factories and new industries were set up. Indian industrialists began demanding very forcefully that the government levy a tax on foreign goods so that the higher sales of Indian goods might continue in future as well.

For many reasons, the government had to accept this demand. After 1917, taxes were levied on numerous foreign goods, one after the other. As a result, factories set up in India were able to develop speedily.

Keywords: First World War, Indian industry at the time of First World War, Reasons for the growth Indian Industry during first world war, Indian industries